Changpeng Zhao Warns Banks May Face Greater Cyber Risk Than Exchanges

Binance founder Changpeng Zhao warned that banks may be more exposed to cyberattacks than crypto exchanges as AI gives attackers more capabilities, extending the security concern to the wider financial system. “If a crypto exchange can be hacked, banks are in a worse position, in my opinion,” Zhao said. He said exchanges attract attackers because of the potential rewards, and urged financial firms to use AI in their defenses and cooperate on security standards. Zhao’s warning about AI described a broader threat. Attackers also used an AI tool during the Oct. 29 intrusion. The attackers spent months preparing, including fake job interviews and poisoned software downloads. Attackers drained roughly $6.3 billion from Binance hot wallets on Oct. 29. Industry partners froze nearly $3 billion of the stolen assets.

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